Biofuel Market Benefits from China's Multi-pronged Efforts toward the Development...

Biofuel Market Benefits from China's Multi-pronged Efforts toward the Development of Renewable Energy

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c87786) has announced the
addition of "Strategic Analysis of the Chinese Biofuel Market" to
their offering.

The rapidly developing Chinese biofuel market is expected to gain
momentum with the Chinese Government's move to assign top priority to
renewable energy. Challenges thrown up by agricultural, energy, and
environmental considerations have stimulated increasing interest in
renewable energy sources, primarily biofuel. Although the market is
still in the embryonic stage, the potential it offers is enormous.
Since 2001, China has been actively propagating the utilization of
environmental-friendly energies. Since biofuel is a low-pollution fuel
compared to mineral petroleum or diesel, it has proved to be the best
option among these new energies. The Renewable Energy Act, 2006
defines the scope of biofuel and acknowledges its strategic position
in China's economic growth. The Government has introduced a special
fund for the development of renewable energy. Producing far less
pollution than mineral petroleum or diesel, biofuel also helps to
bolster China's strategies to promote an inherently cleaner economy.

Since the 1990s, China has been witnessing increased growth in
energy consumption. Domestic sources are unable to cope with the
rising demands from the industry and transportation sectors,
consequently forcing China to depend heavily on imported petroleum. To
implement its long-term development plans to boost biofuel production,
the Government offers tax exemption and financial subsidies for rural
residents engaged in the cultivation of biofuel energy crops. By
promoting the cultivation of energy crops and providing working
opportunities in the biofuel industry, China is helping the
development of the rural economy. The Government is also following a
policy of protectionism and creating an advantageous market
environment for domestic manufacturers. "At present, most biofuel
manufacturers are domestic participants," notes the analyst of this
research service. "In fact, all four bioethanol factories are
large-sized state-owned enterprises."

Increased Production of Crop-based Energy Alternatives and Tighter
Legislation to Boost Biofuel Market Initiatives

The shortage of feedstock, especially in the wake of the increased
demand for biofuels, is a major constraint to the development of the
bioethanol as well as the biodiesel segments. As biofuel feedstock
cultivation is still in the development stages, large-scale supply is
lacking at this juncture. "Whether the feedstock supply can satisfy
the need of the biofuel industry is determined by the land
availability for energy crop and the security status of food in
China," says the analyst. According to the Biomass Industry
Development Plan, arable land was not allowed to be used for the
cultivation of non-food crop; instead, feedstock cultivators could
only use wasteland, alkaline, or saline land. The National Development
and Reform Commission has outlined a detailed plan of action for the
bioethanol industry, wherein the production of bioethanol is expected
to reach 200,000 tons by 2010. China has also commissioned four pilot
projects dedicated to the production of bioethanol to augment its
efforts to step up production.

A series of guidelines, plans, and strategies were undertaken to
invigorate the production of biomass energy since 2005. To ensure the
steady development of the domestic biodiesel industry, China is likely
to continue having a stern regulatory control on the biodiesel
industry from 2007 to 2010, while the more advanced bioethanol segment
already has regulations governing it," says the analyst. This
stringent national control over the bioethanol industry has dissuaded
foreign investment." However, investors could gain favourable policy
outcomes and government support by liaising extensively with
government branches. They also need to conform to the Chinese
regulatory environment and establish alliances with local
manufacturers instead of setting up wholly funded branches.

This Frost & Sullivan research service titled Strategic Analysis
of the Chinese Biofuel Market provides an overview of the Chinese
biofuel market size and structure as a whole, along with the complete
analysis of key market drivers, restraints, and trends that are
impacting the market growth of key engineering plastics. In this
research, Frost & Sullivan's expert analysts thoroughly examine the
following markets: biodiesel and bioethanol.

Key Topics:

- Executive Summary

- Strategic Analysis of the Total Biofuel Market in China

- Strategic Analysis of the Chinese Biodiesel Market

- Strategic Analysis of the Chinese Bioethanol Market

- Regulatory and Legislatory Analysis

- Appendix

For more information visit
here

Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

Copyright Business Wire 2008